In this post:
- Bitrue, a leading crypto exchange platform, has added support for tokenized stocks issued by Backed Finance via xStocks.
- The company will initially support trading for six stocks, including Apple (AAPLX), Nvidia (NVDAX), Tesla (TSLAX), MicroStrategy (MSTRX), Circle (CRCLX) and the S&P 500 (SPYX).
- One of the main benefits of tokenizing stocks on the blockchain is being able to allow investors to trade 24/7, regardless of whether or not U.S. markets are open.
Bitrue users will be able to trade some of the biggest brands in the technology industry, including Nvidia (NVDAX), Apple (AAPLX)and Tesla (TSLAX), as well as the S&P 500 (SPYX). Crypto stocks Circle (CRCLX) and MicroStrategy (MSTRX) are also among the first batch to be made available to Bitrue users.
Tokenizing stocks involves converting shares of companies into digital tokens on the blockchain. Backed Finance and Dinari are currently two of the main players in tokenizing U.S. stocks, after which they are made available to investors via crypto exchange platforms like Bitrue.
Advantages of trading tokenized stocks
One of the benefits of investing in stocks in their tokenized forms is being able to trade 24/7, regardless of whether or not U.S. markets are open. Furthermore, trading tokenized U.S. stocks on the blockchain opens doors for anyone from around the world to invest, regardless of whether they are outside the United States.
Bitrue allows users to buy and sell stocks directly using USDT, eliminating the need for a brokerage account, thus avoiding broker fees. Trading is also more efficient, as orders are executed within seconds.
The stocks are fully backed with real-world assets, with blockchain technology ensuring ownership and transparency.
Tokenized stocks are accessible on Bitrue Alpha
Bitrue users can access tokenized stocks via Bitrue Alpha, a new feature that the crypto exchange introduced to showcase trending tokens before they are listed on the spot exchange.
The first batch of six stocks is already available for trading on the Bitrue app, with more tokenized stocks set to be added at regular intervals.
Although blockchain technology provides transparency and ownership of tokens, xStocks do not grant the actual ownership of company shares, dividends or shareholder rights. They are not registered securities, and thus, are not available to users in some jurisdictions, including the United States, the U.K. and the EU.
Investors are advised to do their own research.
